The Australian Government has introduced the Scams Prevention Framework Bill 2024 into the House of Representatives. Background.
The Bill establishes a legislative framework called the Scams Prevention Framework (SPF) in a new Part IVF to the Competition and Consumer Act to prevent and respond to scams.
‘Scam’ is defined as “a direct or indirect attempt (whether or not successful) to engage an SPF consumer of a regulated service where it would be reasonable to conclude that the attempt:
• involves deception; and
• would, if successful, cause loss or harm including the obtaining of SPF personal information of, or a benefit (such as a financial benefit) from, the SPF consumer or the SPF consumer’s associates.”
An SPF consumer of a regulated service is:
“• a natural person, or a small business operator, who is or may be provided or purportedly provided the service in Australia; or
• a natural person who is ordinarily resident in Australia and is or may be provided or purportedly provided the service outside of Australia by a regulated entity that is either an Australian resident or is providing or purportedly providing the service through a permanent establishment in Australia.”
The Government has committed to initially designating telecommunications services, banking services and digital platform services relating to social media, paid search engine advertising and direct messaging, as regulated services.
All regulated entities must comply with the overarching principles of the SPF.
These principles require each regulated entity to document and implement governance arrangements to combat scams and take reasonable steps to prevent, detect, report, disrupt and respond to scams relating to, connected with, or using the entity’s regulated service.
Obligations contained in the SPF principles are civil penalty provisions. Compliance with the SPF principles will be monitored, investigated and enforced by the ACCC as the SPF general regulator.
The Government will authorise the Australian Financial Complaints Authority as the designated External Dispute Resolution scheme for the three initial sectors designated under the SPF.
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Author: David Jacobson
Principal, Bright Corporate Law
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About David Jacobson
The information contained in this article is not legal advice. It is not to be relied upon as a full statement of the law. You should seek professional advice for your specific needs and circumstances before acting or relying on any of the content.
